Japan and Cambodia sign historic agreement on cross-border QR code payments

Japan and Cambodia have taken a major step towards digital financial integration by signing a memorandum of understanding (MoU) to enable cross-border QR code payments between the two countries.

The agreement, concluded between the National Bank of Cambodia (NBC) and the Payment Japan Association (PJA), aims to establish seamless interoperability between Cambodia's KHQR and Japan's JPQR payment systems.

Boosting tourism, trade and digital economies

The MoU outlines a phased approach to implementation. Initially, Cambodians using local banking apps will be able to scan JPQR codes to make payments in Japan, while Japanese nationals will be able to scan KHQR codes in Cambodia. This initiative aims to simplify cross-border transactions, enhance security and reduce the need for currency exchange, thereby making travel and business between the two countries more convenient.

Officials hope that the system will benefit small and large merchants by expanding payment options for customers and streamlining business operations. The initiative is also expected to boost tourism and trade, thereby promoting economic development in both countries.

Strategic timing and expanded cooperation

The launch of the cross-border QR payment system is scheduled to coincide with the Osaka-Kansai International Expo 2025, which will be held from April to October 2025 in Japan. Only cashless payments will be accepted at the Expo, making QR payment interoperability particularly timely.

This agreement is part of a broader cooperation framework signed in December 2023 between the NBC and Japan's Ministry of Economy, Trade and Industry (METI), in the presence of Cambodian Prime Minister Hun Manet and Japanese Prime Minister Fumio Kishida. This collaboration is part of a broader effort by Japan to promote a unified QR code payment standard (JPQR) in Asia to improve the convenience of digital payments at the national and international levels.

Technical partners and regional integration

For the rollout, Cambodia has designated ACLEDA Bank Plc. and Sathapana Bank as liaison banks, while Japan has appointed NETSTARS as the QR code payment operator. The NBC has already implemented similar cross-border payment initiatives with Thailand, Laos, Malaysia, Vietnam and China, further strengthening Cambodia's commitment to regional financial connectivity.

The Bakong system, Cambodia's blockchain-based interbank payment platform, supports this digital transformation, having processed more than 50 million transactions worth over $10 billion in the first half of 2023 alone.

Outlook

The cross-border QR code payment initiative is expected to be launched in two phases, with the first phase operational in the first half of 2025 and the second phase by the end of the year. This agreement marks an important milestone in digital finance for both countries, paving the way for deeper economic integration and a more robust digital ecosystem in the region.